Nasdaq-listed Indian traveltech major MakeMyTrip reported a net profit of $24.2 Mn in the December quarter (Q3) of the financial year 2023-24 (FY24) up from $0.2 Mn profit posted in the corresponding period of last year on strong travel demand in India.
The company’s net profit also jumped more than 1,000% sequentially from $2 Mn in the prior quarter – Q2 FY24.
MakeMyTrip’s operating revenue rose 26.9% to $214.2 Mn in Q3 FY24 from $170.5 Mn in the year-ago period, with hotels and packages business contributing the highest.
The company’s revenue from hotels and packages business increased 21.5% to $125.5 Mn in the reported quarter from $103.3 Mn in Q3 FY23.
Meanwhile, its revenue from the air ticketing business increased 34.8% to $51.7 Mn in Q3 FY24 from $38.4 Mn in the last year’s quarter.
MakeMyTrip also earned $24.2 Mn from its bus ticketing business, which grew 23.7% year-on-year (YoY).
On the back of the rise in travel demand, the online travel aggregator’s gross bookings zoomed 21.7% YoY to $2,088.3 Mn in Q3 FY24. This was also a 13.5% rise from $1,839.7 Mn reported in Q2 FY24.
“During this seasonally strong quarter, we witnessed robust demand for leisure travel across all domestic and international destinations leading to the highest-ever quarterly gross bookings, revenue, and profit for the group,” Rajesh Magow, Group CEO of MakeMyTrip, said on the Q3 earnings.
“From a consumer perspective, the growing disposable incomes of the middle class in India are expected to continue driving India’s travel and hospitality growth in the coming years,” Magow added.
MakeMyTrip’s expenses also increased during the reported period. Its personnel expenses, or employee cost, rose 8.2% to $35.5 Mn in Q3 FY24 from $32.8 Mn in the prior year’s quarter, primarily due to annual wage increases, the company said.
On the other hand, it kept spending on events and brand building initiatives in response to increased travel demand in India in the quarter. MakeMyTrip’s marketing and sales promotion expenses increased 25% to $36.1 Mn Q3 FY24 from $28.9 Mn a year ago.
The company’s service cost also increased 5.5% to $62.4 Mn during the quarter under review from $59.1 Mn Q3 FY23, primarily due to the sustained elevated travel demand in India.
The post MakeMyTrip’s Q3 PAT Surges To $24.2 Mn On Strong Travel Demand appeared first on Inc42 Media.
